Nobel-winning economist Daron Acemoglu said rescuing liberal democracy requires rebuilding inclusive institutions and prioritizing reforms for the working class.
This proposal comes as global democratic norms face increasing instability. Acemoglu said that the very systems that once drove Western economic success are now failing because they no longer serve a broad segment of the population.
Speaking on the Reuters Breakingviews programme “The Big View” in London, Acemoglu discussed the fragility of current political structures. He said the institutions, laws, and freedoms that created Western prosperity are now under threat. According to Acemoglu, this decline is rooted in a disconnect between leadership and the general public.
"The elites have stopped meeting the needs of the masses," Acemoglu said.
He said that for democracy to survive, it must move away from exclusive power structures and return to inclusive ones. This shift involves ensuring that economic and political benefits are shared more equitably across society, rather than being concentrated at the top.
Acemoglu said the path to recovery is not found in top-down mandates from current leadership. "Any solution starts with the working class," he said.
In a review of his work published Aug. 7, the Guardian noted that Acemoglu's analysis contrasts with other philosophical views on governance. For example, the review mentioned an essay published by Peter Thiel in 2009 [1] titled “The Education of a …”, highlighting different perspectives on the evolution of modern society.
Acemoglu said the current crisis is not an inevitable result of time, but a failure of institutional maintenance. He said the institutions that made the West prosperous are now under threat because they have become stagnant and unresponsive to the pressures of the modern economy.
“"Any solution starts with the working class."”
Acemoglu's thesis suggests that political instability is a symptom of economic exclusion. By framing the rescue of liberal democracy as a socioeconomic project rather than a purely legal or electoral one, he argues that stability cannot be restored without first addressing the material grievances of the working class.
